The hybrid approach to grid networks involves integrating a variety of different energy sources, which are increasingly renewable, along with battery storage and other technologies, to create a more resilient and efficient power system. In practice, this model is useful for addressing the intermittent nature of most renewable sources, like solar and wind, by combining them with storage and other technologies to maximise energy supply, reduce reliance on fossil fuels and lower carbon emissions.

Hybrid power plants can combine solar or wind energy sources by co-locating multiple technologies behind a single connection point. Battery storage ensures that excess energy can be stored during periods of peak generation and released during times of high demand or low capacity, while also reducing reliance on fossil power.

Furthermore, co-location can lead to cost savings ‘by sharing grid connections and optimising land usage, contributing to a more stable and reliable grid, alleviating bottlenecks and shortening grid connection times’, according to a study titled Co-location, Co-location, Co-location by Cornwall Insight and law firm Weightmans, reported by the Solar Power Portal. However, the study notes that ‘favourable regulatory conditions are required if hybrid projects are to reach their full potential, especially with regard to rules and permitting processes’.

Indeed, the European Commission recently recognised the growing need for battery storage, but provides ‘no specific directions for hybrid projects’, says the report.

Nevertheless, positive initiatives are underway across Europe. Spain has amended its Electric Sector Law to accommodate potential hybrid projects in its grid networks. Germany has also introduced the EEG Innovation Tender under the Renewable Energy Sources Act (October 2024), which encourages the combination of battery and storage plants. And Ireland’s Commission for Regulation of Utilities (CRU) finalised new electricity connection policy last October, ‘to overcome challenges to renewable energy permit granting, and open the way for hybrid power plant projects and storage’.

A study by the German Renewable Energy Federation (BEE) suggests that the efficiency of combined wind and solar PV (photovoltaics) could be ‘enormously improved’, given that the benefits of the hybrid approach are relatively ‘low hanging fruits’. Thanks to the complementarity of their electricity generation profiles, the BEE estimates that hybrid projects connecting solar and wind could increase grid connection point usage by 53%, and up to 250% ‘if the over-capacity approach to grid connection points was amended by the German government’, it says. In contrast, PV-only power plants have a utilisation of 13% on average, while wind-only plants provide 33% on average.

However, the BEE also recognises the challenges of combining multiple technologies ‘as they often require larger sites and more complex infrastructure, need standardisation of processes, along with the complexity of raising finance and insurance for novel projects’.

New UK hybrid power initiatives

Significant hybrid power plant connection initiatives are in progress involving the UK and EU partners.

Today, offshore wind farms and interconnectors operate alongside each other, connecting to the shore individually. In the future, hybrid assets could soon enable offshore wind to work together with interconnectors. For example, National Grid is developing plans to deliver the Nautilus and LionLink projects as the next generation of multi-purpose interconnectors for offshore hybrid assets (OHA).

The Nautilus interconnector, a new subsea cable allowing green electricity to flow between the UK and Belgium, is planned to power about 1.7 million UK homes. Its Initial Project Assessment (IPA) was approved by Ofgem in November 2024. It is proposed to connect to the UK grid at the Isle of Grain, Kent, from Belgium – allowing the UK to trade excess power, from renewable solar, wind and hydropower. According to the National Grid, the aim is to support the UK in achieving 18 GW of interconnection by 2030, with net zero emissions by 2050, strengthening UK energy resilience by providing 1.4 GW of flexible capacity.

The LionLink interconnector is planned to be a ‘first-of-a-kind’ electricity link connecting offshore wind between the UK and the Netherlands, supplying 1.8 GW to about 2.5 million homes. The project is currently in the pre-application stage, with the application for development consent anticipated to be submitted to the Planning Directorate in 1Q2026, according to the UK government.

Hybrid hurdles and optimism
A report by Cornwall Insights (November 2024), commissioned by Telis Energy UK, is also optimistic about the potential of hybrid systems for power grid networks. ‘If the hurdles can be overcome, hybrid energy hubs – which co-locate multiple low-carbon generation technologies – could become a powerful tool in the UK transition to net zero,’ says Senior Consultant Ratnottam Sengupta.

Cornwall estimates that combining technologies – like solar or wind with battery storage and developing technologies like small modular reactors (SMRs) and hydrogen – could maximise energy transferred to the grid via network interconnection, generating power over 50% of the time, compared to intermittent solar resources which are available only 11% on average and 30–35% for wind power.

Co-location of multiple renewable energy sources using one grid connection ‘could respond to lack of grid capacity in the UK, with the benefit of synergies between different technologies, while maximising exportable renewable power generation’, says the study. Furthermore, cost savings could be passed on to energy consumers via a more competitive wholesale price.

However, the report recognises that ‘a new approach to financing’ will be needed to support multiple technologies in one hub. It also calls for clarity from the UK government in areas like the Review of Electricity Arrangements (REMA) which involves reforming grid connections and strategic spatial energy planning (SSEP) to reduce network constraints and speed up connections. The UK government is currently reforming the connection process, prioritising projects based on ‘readiness’ and alignment with the Clean Power 2030 pathway.

The National Energy System Operator (NESO) has been in consultation regarding significant reform on grid connections. The current connection queue is made up of over 750 GW of projects, according to research by Timera, including 242 GW of storage (pumped storage, battery energy storage systems (BESS) and other long duration energy storage). NESO previously adopted a ‘first come, first served’ approach for grid connections. However, with the clean power target now set for 2030, NESO has revised this approach to factor in ‘strategic need’ and ‘readiness’ for projects.

REMA is also reviewing the Transmission Network Use of System (TNUoS) and connection charges to ensure they support a low-carbon energy system.

‘These reforms will be critical to ensuring that hybrid energy hubs can deliver on their promising potential for the UK energy grid,’ remarks Sengupta. ‘With competition for grid connections causing a bottleneck for the renewable roll-out, and a well-publicised backlog of grid connection approvals, innovative solutions to speed up renewables roll-out need to be considered… hybrid energy hubs offer a promising solution.’

Cornwall Insight estimates that combining technologies – like solar or wind with battery storage and developing technologies like small modular reactors (SMRs) and hydrogen – could... generate power over 50% of the time. 

Whole systems approach
There is consensus among major power providers and industry users that a ‘whole systems approach’ offers an integrated way of improving grid flexibility in the energy transition.

A new study by DNV, From silos to systems, highlights the scale of the challenge based on interviews with 1,100 senior energy professionals. They insist that a whole systems approach is essential to improve grid efficiency, flexibility and resilience – citing lessons drawn from the Iberian power outage and the Texas blackout previously.

The report also emphasises the need for a hybrid approach in order to manage the expansion of a variety of renewables, storage and electrification. It also recognises that about 50% of global energy systems are still likely to be fossil-fuel sourced by 2050, according to International Energy Agency (IEA) forecasts.

The report notes that cross-border power grid networks can help countries manage peak demand, avoid curtailment of renewables and improve resilience. DNV research suggests that interconnections between national grids in the Association of Southeast Asian Nations (ASEAN) region could save $800bn (about 11%) of the overall net present cost of the region’s decarbonisation strategies, compared with each country operating in isolation.

For example, the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project is aimed at importing hydropower from Laos to Singapore.

Coordination typically requires a coalition or single organisation with a whole system oversight. For instance, the European Network of Transmission System Operators for Electricity (ENTSO-E) coordinates the operation of 39 transmission system operators across 35 countries. ENTSO-E published a report on System flexibility needs for the energy transition in December 2024, highlighting the need for pan-European flexibility, given that power generation and demand variability is projected to double between 2025 and 2033 as systems evolve towards a carbon-neutral Europe.

The EU’s Connecting Europe Facility (CEF) was set up in 2013 on the basis of the TEN-E (Trans-European Networks for Energy Regulation) and was revised in June 2022 in alignment with the European Green Deal. The aim is to bring together regional EU stakeholders to help implement Projects of Common Interest (PCIs) and Projects of Mutual Interest (PMIs) that prioritise energy infrastructure, with a streamlined permit-granting process within 3–5 years.

Dedicated offshore grid planning provisions were introduced in the revised regulation, to support scale up of offshore wind developments. Interestingly, natural gas planning projects are no longer granted PCI or PMI status. But renewables get a thumbs up with support for hydrogen, electrolysers and local low-carbon and renewable gas projects, as well as an obligation for all projects to meet mandatory sustainability criteria.

Looking globally, the DNV study points out that an effective energy transition will require coordinated planning across traditionally siloed sectors like gas and electricity, ‘to avoid inefficiencies, mismatches or delays in reaching net zero targets’.

To put the cost in context, Bloomberg NEF estimates that the transformation of the power grids to handle increased electrification and distributed renewable energy will require investment of $21.4tn by 2050 to create smarter, more integrated operations.

Joining the dots for a more flexible power grid is likely to be challenging wherever you look, nationally or internationally in the energy transition.

• Further reading: ‘Seasons in the sun: how solar power is changing Europe’s electricity markets’. The flare of interest among northern Europeans in solar power over the last few years is sparking great demand for grid flexibility services, including battery storage, finds this year’s Observatory of Energy Transitions report from De Gaulle Fleurance.
• Find more about Western Australia’s first large-scale hybrid solar generation and battery energy storage project.